Michael Cameron Chief Financial Officer June UBS Australian Financial Services Conference

2 The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 12 June It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. Disclaimer

3 Speaker’s Notes Speaker’s notes for this presentation are attached below each slide. To access them, you may need to save the slides in PowerPoint and view/print in “notes view.”

4 Agenda Long Term Growth Outlook Commonwealth Bank’s Position Divisional Focus

Long Term Growth Outlook

6 Strong credit growth over the last 20 years... Sources: Cyclical Prudence - Credit Cycles in Australia, Kent & D’Arcy; Commonwealth Research Per cent of nominal GDP In Australia, average total credit growth over the last 20 years has been 12%p.a.

7...but banking margins have been squeezed Source: Company Financial Statements Average Operating Margins* 4 Major Banks ( ) *Margin calculated as Total Income / Total Controllable Assets Importance of: Scale Brand Large customer base Extensive proprietary and third party distribution

8 Expectation premium > 0 Investor returns - natural cycle or structural shift? Source: Moody's Manual of Investments; Value Management Research Engine; Top Performer Study % Ratio of Market Value of Companies Over Fundamental Value ( ) 2002

9 $m Total Net Retail Fund Flows (for quarter ended) Source: Plan for Life (ex Cash) Equity Markets Source: Bloomberg Weak equity markets and declining fund flows Index (Base 100) -33% -11% MSCI World All Ordinaries Dec-01Mar-02Jun-02Sep-02Dec-02Mar Dec-01Mar-02Jun-02Sep-02Dec-02Mar-03

10 Projected Size of Various Product Segments $ Billion Recent trends shaping the future of funds management... Strong inherent growth expected, particularly retail Growth of mastertrusts Industry consolidation Institutionalisation of distribution Industry commoditisation Source: DEXX&R projections February 2003, assumes 5% pa post-fee returns

11 Projected Size of Various Product Segments $ Billion...and the life insurance industry Strong industry growth to continue Repricing of products Product rationalisation & customer migration Increasing regulation Source: DEXX&R projections February 2003

12 Summary Long Term Growth Outlook Credit growth will slow Margins will decline Funds Management and Insurance to grow

Commonwealth Bank’s Position

14 Organising to meet current and longer term challenges Immediate Environment: Productivity Implementation of strategic initiatives Longer Term Environment: Leverage key competitive strengths Scale Brand Risk Profile Products and Businesses Distribution Innovation People

15 Our starting position Source: CBA portfolio analysis 2003 Commonwealth Bank Market Shares* Merchant Acquiring Sovereign Deposits Transaction Services Credit Cards Home Loans Global Markets Asset Finance Managed Investments Life Insurance Corporate and Business Lending Institutional Banking Products New Zealand Deposits New Zealand Lending Property Managed Funds General Insurance Hong Kong *Sorted by market share rank 3% 5% 9% 13% 15% 17% 18% 15% 16% 20% 22% 25% 31% 36% 0%10%20%30%40% Rank

16 Premium Financial Services Investment & Insurance Services Institutional & Business Services Personal banking customers, Small business banking customers Branches, Ezy- Banking, ATM, EFTPOS, Phone, On-line, Mortgage brokers Retail Banking Services Premium client including professionals and business Agents, Brokers, Financial Advisers Institutional, Corporate, Commercial business customers Relationship managers, Premium investment centres, phone, on-line Agents, Branches, Brokers, Financial advisers, Premium investment centres, DirectDealer- ships, Institutional clients Relationship managers, Business centres Finance, Risk Management, Human Resources, Strategy, Technology, Legal, Secretariat A re-aligned organisational structure Customer Group Channels Support International Financial Services Personal, Business, Rural, Corporate and Commercial customers, Agents, Brokers and Financial Advisers Agents, Brokers, Financial advisers, Branches, Internet, Call centres, ATM, EFTPOS, Strategic alliances

17 Deepening our customer relationships From...To... Pure cross sellNeeds based bundling Fragmented definitionConcise definition Varied measuresConsistent measure No published targetsTransparent targets Inconsistent group-wide sales and service system One Group approach

18 Summary Commonwealth Bank’s Position Productivity Improvement The Customer

Divisional Focus v  Retail Banking Services  Premium Financial Services  Institutional & Business Services  Investment & Insurance Services  International Financial Services

20 Branch/Agencies Total Branches 1,016 Total Agencies 3,890 Electronic Total ATMs 3,116 EFTPOS Terminals 122,767 Online Netbank customers 2.6m CBA Market Share 27% Mobile Mobile Bankers 216 Direct Banking Total Calls (02/3 YTD) 110m Advice/3rd Party Active Mortgage 252 origination head agreements Financial Planners 335 Financial Consultants 161 * Ezy Banking - over 758 Woolworths stores Retail: a leading profile Our network - Our staff - 18,000 people (including operations) Our footprint - Leading market share in core Retail products ~ total footings of $169.6bn at 31 March 2003 All data as at 30/04/03 unless specified

21 Retail: product positioning Transaction accounts - simplified and rationalised Home loans - re-engineered by 2004 Credit cards - growing Deposits - 65% of Bank funding Sustainable cost to income ratios Improved service at lower cost Increased cross-sell and innovation Low cost funding platform

22 Premium: a differentiated business model Banking Platform Borrowing Services Lending Services Transactional Banking Broking Platform Advisory Services Direct Investment Indirect Investment Debt Products Equity Products Commercial Adviser Personal Adviser Investment Adviser Financial Adviser Risk/Insurance Adviser Client Primary Relationship Manager Secondary Relationship Manager & specialised advice

23 Premium: building a long term business Over 170,000 client relationships migrated by end June 2003 Physical capacity substantially completed We have recently acquired TD Waterhouse. Apr 02Dec 02Jun 03 Relationships 40,000>75,000>170,000 Staff 8301,1301,546 Locations CommSec Accounts 685,000720,000>1.1M Cost to Income: Banking* 48% Equities* 75% Key Performance Indicators:

24 Institutional & Business: redesign for business customers Relationship Model Deepen relationship More clients Deepen relationship More clients Deepen relationship More clients Deepen relationship Efficiency gains Focus of Change Initiatives Client Turnover ($m) > Client Total Footings ($m) > <0.15 Number of Clients 800 2,200 9,200 4,300 59, ,000 Market Share 2002 (%) Cost-to- Income 2002 (%) Dedicated Relationship Executive Dedicated team of Business Bankers Segment Small Top Tier Corporate Regional SME Business Corporate Institutional

25 Institutional & Business: improve overall satisfaction levels Source: Business Finance Monitor October 2002 to March businesses with turnover up to $40 million Satisfaction with Main Financial Institution Relationship Main Bank clients 7% 9% 32% 21% 5% 8% 24% 34% 29% 6% 10% 26% 32% 25% 5% 9% 28% 33% 25% Banking (Business Customers) Very Dissatisfied Fairly Dissatisfied Neither Satisfied nor Dissatisfied Fairly Satisfied Very Satisfied CBAANZNAB WBC

26 Funds management: building opportunities $m Realise integration benefits, including further rationalisation of legacy systems Offer increased style diversification Leverage internal distribution opportunities Leverage scale to reduce costs Grow alternate asset classes Increase reputation as manager of international shares FirstChoiceOther Strategic Initiatives

27 Insurance: distribution, service and risk pricing Increase internal distribution through:  Personal Insurance Consultants  Business Investment Managers Repricing of premiums Upskilling of call centre staff Product rationalisation Systems migration Trend in Share of Inforce Premiums (Top 5 Players) Strategic Focus Source: Plan for Life

28 International: our geographical presence * includes Japan, Indonesia, Vietnam, China, Fiji Life Insurance Banking Funds Management New Zealand UK Hong Kong USA Singapore Other Asia & Pacific*

29 ASB 11% CBA Banking 89% International: ASB Bank a strong performer CBA Banking 90% ASB Bank 10% Net Profit - Banking ASB Bank represented 10% of the total banking net profit after tax (as at December 2002) Lending Assets - Banking ASB Bank represented 11% of the total banking lending assets (as at December 2002)

30 Summary Divisional Focus Further improve the service experience Building on our leading funds management position Insurance business well positioned Continue to develop international businesses

31 Key Points A number of trends are shaping the outlook for financial services:  Banking: Slowing growth in a lower margin environment  Funds Management: industry dynamics are changing  Insurance: positioning to drive growth and efficiency gains Focus on improved productivity and customer commitment Customer relationship initiatives being implemented in the retail bank Customer migration, service model and product development well progressed in the premium business New segmentation and service models implemented in the institutional and business bank Leadership in funds management to continue Insurance business well positioned A sound international strategy Strong growth position

Michael Cameron Chief Financial Officer June UBS Australian Financial Services Conference